Business Management

Business Growth In Slow Economies

It can be difficult to grow a business anytime but properly managed small businesses can thrive in even poor economies. Here are steps to consider when facing challenging markets:





1. Manage costs: To stay ahead of the curve businesses have to cut costs with the precision of a surgeon. Cut too little and the company’s survival may not be assured; cut too much and the business may jeopardize the quality service offered to customers.

2. Broaden the customer base: The business is at risk if too much dependence is placed on a few customers who could develop financial difficulties. Spread the risk and reliance by having as large a base of stable customers as possible. At the same time give important customers special attention, nurture relationships that will build loyalty.

3. Refine Marketing: Refine key selling points and use new internet based marketing to attract a new generation of customers. Take full advantage of free social networking; Twitter and Facebook may offer new free ways to advertise. Combine this with other direct marketing approached to reach customers.

4. Manage assets and profits: Many businesses focus on sales, expenses, and margins and often ignore assets, particularly cash flow. Profits and hence net worth can be increased through cash flow management. Prudent management of needs with both short and long term sourcing of funds with a plan developed in conjunction with a banker can be a strong tactic to ensure growth.

5. Maintain flexibility: Businesses must stay alert and respond quickly to market changes. Pay attention to market feedback and analyse facts. Adapt new systems and use current technologies to facilitate response.

Finding the optimum balance between sales and expenditure will guarantee growth in austere times and enable business to thrive when the market improves.

STRATEGIC PLANNING

Strategic planning is an investment in the business.

Let’s review a few key factors on Strategic Planning that help small business owners determine the value of this process.





1. WHAT IS IT?

- A planning tool for management to formulate high-level business strategy.
- Strategic Planning provides the foundation for the development of a more detailed Business Plan.
- Strategic Planning is top down: Strategic – Tactical – Operational.


2. WHY DO STRATEGIC PLANNING?

- To define the precise mission of the firm.
- To measure the competitive environment.
- To prioritize external opportunities and assess potential threats.
- To help manage growth.
- To focus on key objectives.
- To satisfy succession planning needs.
- To focus on internal strengths and overcome weaknesses.
- To formulate strategy to maintain a competitive position.


3. WHEN TO DO STRATEGIC PLANNING

- When the business needs to establish guidelines for a new or updating of a Business Plan.
- When a review is needed to maximize resource utilization.
- When the business needs to prioritize growth options.

4. What are the goals for Strategic Planning

- Quantify objectives for the business.
- Establish indicators of achievement.
- Develop an implementation plan.
- Assign responsibilities and accountability.
- Identify resource requirement for plan achievement – financial, personnel, equipment, facility, products.


Creating, articulating and sticking to your vision is the single most important job you have as a leader. Strategic planning isn’t a one-time event. Once you’ve laid out your strategy, it’s crucial to stay focused over the long-term.

I hope you are able to plan for success.
   

Keys to Managing Success

Let’s look at some key factors that contribute to business success. The role management plays is critical and management must focus on and achieve the goals and objectives set for the business. This is accomplished with a number of key management functions.





1. Planning: 
The key to your success is having a business plan in place. Whether you're about to launch a start-up or you've been in business for years, your business' direction is guided by your business plan. To begin the planning process, you'll need to do some critical analysis; business planning is about realistically forecasting where your business is going.

2. Organizing: 
Organizational design is the way in which you set up your company (employees, information and technologies) to best meet your business objectives. How you structure your business has a major impact on how well it functions. There is no single best organizational design for all small businesses. Each business structure is as unique as the organization it represents.

3. Leadership:
A leader is someone who has a vision, a drive, and a commitment to achieve beyond that vision. The leader must then also have the skillset to enlist the support of others in the organization to achieve the stated goals.

4. Controlling:
Many small businesses lack proper control systems because they are focused on production or service issues.
Having a control system allows you to monitor measure and adjust your organisation’s performance, whether it is sales, production capabilities, or general efficiencies. In other words, the purpose of business control is to identify unfavourable business performance so appropriate actions can be undertaken.

5. Communicating:
Communication is essence of management. The basic functions of management as shown, planning, organizing, leading, controlling cannot be performed well without effective communication. Business communication involves constant flow of information and receipt of feedback. This is essential for the growth and success of the organization.

In the end, management will determine the success or failure of a business. Success surely cannot be attained without decent management skills.